$13k O% Balance Transfer from Capital One Credit Card

Well I bit again. Back in June I signed up for a 0% balance transfer from CitiCard for $26.5k, now I signed up for a $13k 0% balance transfer from Capital One.

Since I no longer have any major financing moves in my immediate future (no plans to buy another property), I went ahead and put my credit score back to work by applying for a new credit card, taking the 0% balance transfer offer, and moving the cash to my HSBC Internet Savings Account to earn 5.05% APY.

This time I used 2 different techniques to extract the balance transfer from the new credit card.

When I applied for the credit card I requested a $10k balance transfer to my Wachovia Ready Reserve (basically a line of credit acct) account. Then I transferred the money from my reserve account to my checking account, and finally to my savings account.

When I received the actual credit card, the mailing included a "purchase check" that could be used for balance transfers with no transaction fee. So I wrote the check to myself for the remaining credit, deposited the check into my checking account and then moved the cash to my savings account.

For future reference, I found it less hassle to transfer using the purchase check so I will opt for using the check in the future rather than transferring it to my line of credit account.

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Comments (12)

DATE: 4:42 PM
Isn't free money addicting? I loved those citi-card offers. You should get your fiancee to sign up for some of them as well. Those $100 gift cards come in handy.

Posted by franky | September 10, 2006 3:17 PM

DATE: 5:01 PM
Does this affect your credit any?!!I wnat to do it but don't want to negatively affect my credit

Posted by pyroracing85 | September 10, 2006 3:17 PM

DATE: 7:51 PM
I'm suprised a "purchase" check can be used for balance transfers. You're sure that the fine print allowed for BT's?Matthew @ Crazy Money

Posted by Matthew | September 10, 2006 3:17 PM

DATE: 12:03 AM
I recently got a Chase check for 0% through August 2007. They send me these all the time. I plan to take advantage of this, probably drawing to my maximum line which is approximately 35k. Fee is $100.

Posted by Jojo | September 10, 2006 3:17 PM

DATE: 4:03 PM
I found the Citi American Express Dividend card to be the easiest balance transfer. They just sent me a check in the mail!!!Obsessedwithmoneywww.obsessedwithmoney.blogspot.com

Posted by ObsessedWithMoney | September 10, 2006 3:17 PM

Be careful with those BT checks and read the fine print. AmEx has wised up, adding language saying that if you make a promotional rate payable to "you", "your company" or "a brokerage company", then you've voided the promotion and the check is no longer a BT, it's considered a cash advance. I woudn't be surprised, esp. with the BOA/AmEx alliance, if other CC companies pick this up.

Greg

Posted by Greg | September 20, 2006 8:41 AM

Interesting hadn't heard of that. So far so good, but I will make sure I double check for this type of fine print.

Posted by 2 million | September 20, 2006 2:43 PM

can I ask you a question?
do you usually balance transfer maximum credit line,
or just 90% of the credit line?

Posted by sam | November 8, 2006 5:59 PM

I usually transfer as much as they let me. Great point though - the credit scores are typically dinged when you have >75% and >90% of you credit line outstanding. Remember you usually have to make a minimum monthly payment that is 2-3% of the balance so it only take a few months for you balance to drop below 90% of your credit limit

Posted by 2million | November 8, 2006 7:38 PM

do you happen to have a llink to apply for the capital one card with 0% balance transfer? thanks.

Posted by Luu | November 8, 2006 8:06 PM

Need some Help.....I owe $7k on my Citi card and are tired of paying the interest. If I apply for a 0% for 12 month and transfer my balance to this card, the idea is to take the max out say $15k take the difference, $8k and put in a ING account to collect interest, and what do I when the 12 month period is up is my only question?

Posted by greg | March 14, 2007 7:56 PM

Read this balance transfer guide for more info, but the net is that you take the money from your savings account and pay off the balance before the 0% APR expires. The net is you will be able to earn interest on the money in teh savings account, but it shouldn't cost you any interest - you pocket the difference.

Posted by 2 million | March 14, 2007 8:25 PM